A bill to amend the Internal Revenue Code of 1954 to exempt holdings in independent local newspapers from taxes on excess business holdings of private foundations.

Amends the Internal Revenue Code to exempt holdings in an independent local newspaper business from the tax on excess business holdings of private foundations.

Defines an "independent local newspaper business" as: (1) a proprietorship which publishes an independent local newspaper; (2) a partnership which publishes such a newspaper and which has none of its outstanding partnership interests traded in an established securities market; and (3) a corporation which publishes such a newspaper and which has none of its outstanding capital stock traded in an established securities market.